Which of the following is considered a "primary market" transaction?
A) You buy shares in the public offering of a start-up company in the computer industry.
B) Your mother sells you the shares she purchased in your uncle's latest business venture.
C) You buy shares in Apple from an online brokerage
D) You purchase call options issued by Ford Motor Company.
E) You purchase warrants issued by General Motors Corporation.

Question

Quizplus · Accepted Answer

In a primary market transaction, securities are created and sold for the first time. Buying shares in a public offering of a start-up company is a primary market transaction because the company is issuing new shares to investors.

Which of the Following Is Considered a "Primary Market" Transaction